Wrap Text
Closing on Acquisition of Bordersley Flexible Power Site
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
(“Kibo” or “the Company”)
Dated: 21 June 2019
Kibo Energy PLC (‘Kibo’ or the ‘Company’)
MAST Energy Developments Limited: Successful Closing on Acquisition of Bordersley Flexible
Power Site
Further to its RNS dated 21 May 2019, Kibo Energy PLC, the multi-asset, Africa focused, energy
company, is pleased to announce an update on its 60% owned subsidiary, MAST Energy Developments
Limited (‘MED’), a private UK registered company targeting the development and operation of flexible
power plants to service the UK reserve power generation market.
Highlights
*MED has completed acquisition of Bordersley Power Limited (‘Bordersley’), a Special
Purpose Vehicle (‘SPV’) which will comprise a 5MW gas-fuelled power generation plant
targeting commercial commissioning end Q1 2020
*Consideration of GBP175,000 in cash and reimbursement to the SPV vendor GBP2,000 in
costs related to the Gas Connection Offer
*Louis Coetzee and Pieter Krügel to be appointed as directors of Bordersley (existing directors
and officers of Bordersley to resign)
*Multinational Clarke Energy selected as preferred EPC contractor
*Encora Energy Limited selected as preferred owners engineer
*Negotiations underway with Statkraft Markets GmbH for a power purchase agreement
Louis Coetzee, CEO of Kibo Energy, commented, “As we progress Kibo along its journey into the
Energy market, we discover many opportunities aligned with our strategy. As early as November 2016,
the Carbon Trust, in collaboration with the Imperial College published in their report, “An Analysis of
Electricity System Flexibility for Great Britain”: “The UK electricity system is undergoing significant
changes to provide electricity that is secure, affordable and low carbon. To achieve decarbonisation, the
electricity system will integrate increasing amounts of variable renewable and inflexible nuclear
generation, whilst enabling the electrification of the heat and transport sectors. These changes will
increase the need for system flexibility. At the same time traditional sources of flexibility, such as
conventional coal and gas generation, will reduce in capacity. Therefore, new sources of flexibility will
be needed to adequately meet demand and ensure system stability”.
This initial strategic acquisition made by MED is a key milestone as it advances its strategy to become
a key player in the UK flexible power generation market. Preparations, including the appointment of an
EPC contractor and owners engineer, as well as commercial discussions, are well underway ahead of
MED’s target of first operations in late Q1 2020.”
Sale and Purchase Agreement
As part of its strategy to develop and operate flexible power plants to service the Reserve Power
generation market, MED has completed on a Sale and Purchase Agreement (‘SPA’) to acquire
Bordersley, an SPV, from Balance Power Projects Limited (‘Balance’) as referred to in the RNS of 21
May 2019.
Bordersley will comprise a 5MW gas-fuelled power generation plant supported by a Grid Connection
Offer and a Gas Connection Offer, which, subject to successful financial close, notice to proceed, and
no external connectivity delays, is being targeted for commercial commissioning end Q1 2020.
As part of the Bordersley development, Clarke Energy, a multinational specialist in distributed power
generation solutions, has been selected as the preferred Engineering, Procurement and Construction
(“EPC”) contractor; a proposal is being evaluated and contract negotiations underway. Additionally,
contract negotiations underway with both Encora Energy Limited, which has been selected as the
preferred owners engineer, and Statkraft Markets GmbH for a power purchase agreement (‘PPA’),
regarding the implementation and execution of the MED desired trading and optimisation strategy.
**ENDS**
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU)
no. 596/2014.
For further information please visit www.kibo.energy or contact:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
Ben Tadd / +44 (0) 20 3700 0093 SVS Securities Limited Joint Broker
Tom Curran
First Equity Limited Joint Broker
Jason Robertson +44 (0) 20 7374 2212
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
Isabel de Salis / +44 (0) 20 7236 1177 St Brides Partners Ltd Investor and Media
Gaby Jenner Relations Adviser
Notes
Kibo Energy PLC is a multi-asset, Africa focused, energy company positioned to address the acute
power deficit, which is one of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company’s objective to become a leading independent power producer in
the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power
Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana;
and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in
parallel, the Company intends to leverage considerable economies of scale and timing in respect of
strategic partnerships, procurement, equipment, human capital, execution capability / capacity and
project finance.
Additionally, the Company has a 60% interest in MAST Energy Developments Limited (‘MED’), a
private UK registered company targeting the development and operation of flexible power plants to
service the Reserve Power generation market.
Johannesburg
21 June 2019
Corporate and Designated Adviser
River Group
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